Over the past few weeks, Bitcoin (BTC) has been consolidating in the range around $7,000, seemingly stuck in between a rock and a hard place. Indeed, the cryptocurrency has many times bounced in the mid-$6,000s, where there is macro support, and has been rejected multiple times in the resistance band around the high-$7,000s.<\/p>\n
According to an eerily accurate fractal pointed out by a cryptocurrency trader, Bitcoin will need to break higher soon, or else a strong drop towards the $3,000 range may soon take place.<\/p>\n
Cryptocurrency trader Mr. Chief recently posted the below tweet<\/a>, noting that Bitcoin’s price action since the start of 2019 is eerily reminiscent of the chart of the stock of AMD from 1991-1992. Both charts, he pointed out, saw a strong rally higher, a parabolic peak, a consolidation defined by a descending triangle, a fake breakout above the hypotenuse, and an inverse head and shoulders \u2014 a classical bottoming pattern.<\/p>\n In the case of AMD, its price broke below the inverse head and shoulders pattern, plunging by 50% in the weeks that followed.<\/p>\n The fate of Bitcoin’s inverse head and shoulders pattern is currently undecided. But if it follows AMD, the price of the cryptocurrency will collapse towards $3,000 in a rapid amount of time, likely creating an extended bear market phase that will ruin bulls.<\/p>\n $BTC<\/a> Thoughts<\/p>\n Low time frames look decent for a bounce. Personally, I really want to see a follow through on this IH&S in the very near future. If not, I think momentum could run dry very quickly<\/p>\n Be careful folks. Still at resistance. Don't get too cocky about this move…yet pic.twitter.com\/8Wa4r6xcxK<\/a><\/p>\n — MrChief (@HaloCrypto) January 3, 2020<\/a><\/p><\/blockquote>\n\n